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National Airline Ceases Operation
On
November 6, National Airlines ceased operations, ending nearly two years
of flying under Chapter 11 bankruptcy protection. National's position
became more precarious after the Air Transportation Stabilization Board
in August rejected its application for a $50.5 million federal loan guarantee.
The airline then put together a $112 million financing deal it said would
bring it out of Chapter 11, but the arrangement collapsed.
maison ecologique
Under Federal law, customers holding tickets from carriers for a particular
route are entitled to transportation on a space-available basis on any
airline currently serving that route. The provision, part of the law enacted
in the aftermath of Sept. 11, is in effect until May. The DOT has said
the law means airlines must honor each other’s tickets in such situations
"to the extent practicable," so long as passengers request accommodation
within 60 days of the suspension of service. As of November 7, US Airways,
Alaska Airlines and America West had begun to accommodate National passengers.
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